FMA fears Chinese New Zealanders are under-reporting investment scams

The Financial Markets Authority (FMA), New Zealand's government regulator of investments, urged Chinese New Zealanders to beware of investment scams in the current economic climate, and to report any investment scams to the FMA.

According to the official press release, ​in 2020, the FMA received almost 200 reports of scams and fraud, but only a handful of complaints were from Chinese New Zealanders. 

Liam Mason, Director of Regulation in FMA, suspects that many scam victims are choosing to not report scams. He says the victims may not know who to contact about a scam or may think there's no point because it's a small amount or they haven't actually lost money.

Mr Mason also mentions that the FMA's Chinese-speaking staff are dedicated to investigating scams, and its call centre uses interpreters to help complainants when English is not their first language.

"Investors should not be easily fooled by professional-looking websites, and that the use of online tools is a common thread among investment scams," he added.

Mr Mason concludes that scammers prey on people's desire not to lose face or cause a fuss. Reporting them means the FMA can investigate, warn the public, and refer victims to other agencies who may have more tools to help.